--- Begin Message ---
=====================================================================
FOR IMMEDIATE RELEASE:
May 18, 2002
Department of Justice Declines to Pay Hamilton Securities Monies Owed for
Work That Saved the Government $2.2 Billion
===============================================================
On March 18, 2002, United States District Court Judge Louis F. Oberdorfer
issued a scheduling order for United States of America, ex. rel., Ervin and
Associates, Inc. v. The Hamilton Securities Group et al. (the qui tam case)
and the related case filed by Hamilton against Ervin & Associates, a
Ginnie Mae (HUD) contractor, and John Ervin, individually.
The order ends the mediation between the Department of Justice, Ervin and
Associates, and The Hamilton Securities Group without settlement. A
consolidated trial is scheduled for September, 2003 with discovery underway.
The mediation began in May 2001, shortly after a five year investigation of
the HUD loan sales program by the Department of Justice (DOJ) and the
Department of Housing and Urban Development (HUD) Office of Inspector
General into Ervin's allegations concluded with no findings of any wrong
doing. The governing statute provides for a 60 day investigation
period.
During the five year investigation, Hamilton repeatedly produced
affidavits and documents affirming the absence of any evidence
to support Ervin's allegations, including from individuals associated
with the loan sales program, affidavits of HUD auditors who
informed the government in 1996 that there was no evidence
to support Ervin's allegations and documents from FBI investigators
who informed the government in 1999 that there was no such evidence.
Hamilton also produced evidence suggesting that government
investigators tried to falsify evidence against Hamilton.
Hamilton is waiting for the Court of Claims to proceed on Hamilton's
litigation to force the government to pay outstanding bills on services
rendered by Hamilton between 1994-97 which saved the FHA Funds
at HUD $2.2 billion as calculated by the government and confirmed
by an audit of the General Accounting Office (GAO).
Hamilton's efforts to support HUD reengineering efforts were terminated
in 1997 when the government decided to return to traditional methods
of resolving defaulted mortgages, including growing much large
inventories of government owned and controlled foreclosed properties
that necessary with less expensive resolution methods.
Catherine Austin Fitts, founder of Hamilton and now President of Solari,
Inc., said, "Hamilton has given DOJ and HUD every opportunity to do
the right thing by Hamilton's shareholders and former employees,
all whom served their government, the taxpayers and communities
loyally and well. We are deeply disappointed that the government
has not paid Hamilton for work performed and rated excellent by
the government itself. We are also deeply disappointed that DOJ
declined to seek dismissal of a meritless qui tam case brought
in the name of the government despite declining to join in the case."
For more information, see http://www.solari.com/gideon. All press inquiries
should be directed to Hamilton's attorneys, Michael J. McManus or Kenneth E.
Ryan at Drinker Biddle & Reath LLP (202/842-8830, [EMAIL PROTECTED]; or
202/842-8807, [EMAIL PROTECTED]) or Catherine Austin Fitts, Solari, Inc.
(731.764.2515, [EMAIL PROTECTED])
--- End Message ---
